NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Calloway Real Estate Investment Trust ("Calloway" or the "REIT") (TSX:CWT.UN) announced today that it will redeem all of its outstanding 6.65% Convertible Unsecured Subordinated Debentures (the "Debentures") on December 18, 2012 (the "Redemption Date"). The Debentures were issued May 2, 2008 and mature on June 30, 2013.

The redemption price has been determined in accordance with the provisions of the Trust Indenture and Supplemental Indenture related to the Debentures. The redemption price will be paid in cash equal to the principle of $1,000 together with accrued and unpaid interest on the Debentures up to, but not including, the Redemption Date, for a total of $1,031.15 per $1,000 principal amount of Debentures (less any taxes required to be deducted or withheld) (the "Redemption Price").

Notice of redemption has been delivered to Computershare Trust Company of Canada in accordance with the Trust Indenture.

The aggregate principal amount of the Debentures currently outstanding is $99,483,000. Calloway intends to use cash on hand and to draw funds from its existing revolving line of credit to pay the Redemption Price to the extent the Debentures are not then converted. The Debentures are listed for trading on the Toronto Stock Exchange under the trading symbol "CWT.DB.A" and may be converted in accordance with their terms into Units of the REIT until December 17, 2012 The Debentures are convertible at $25.25 per Unit of the REIT.

Non-registered holders (banks, brokerage firms or other financial institutions) who maintain their interests in the Debentures through CDS & Co. ("CDS") should contact their CDS customer service representative with any questions about the redemption. Alternatively, beneficial holders with any questions about the redemption should contact their respective brokerage firm or financial institution, which holds interests in the Debentures through CDS on their behalf.

About Calloway

Calloway is one of Canada's largest real estate investment trusts with an enterprise value of approximately $6.5 billion. It owns and manages approximately 26.2 million square feet in 120 value-oriented retail centres having the strongest national and regional retailers, as well as strong neighbourhood merchants. Calloway's vision is to provide a value-oriented shopping experience to Canadian consumers. For more information on Calloway, visit www.callowayreit.com.